VATupdate

VAT rates in Malawi

Quick overview

Standard Rate Reduced Rate Other Rates
16,5% N/A Zero rated (0%) and exempt

The local name for VAT in Malawi is Value-added tax (VAT).

There is basically 1 VAT rate in Malawi:

  • Standard VAT rate is 16,5%

Recent developments

For more information about (recent) rate change developments in Malawi, please click HERE.

Standard rate: 16,5%

This rate applies for all transactions that take place in Malawi, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

0% VAT on these transactions with the right to deduct VAT.

  • Exports of goods and services
  • Laundry soap
  • Exercise books
  • Goods shipped as stores on aircraft and vessels leaving the territory of Malawi
  • Fertilizers
  • Sheath contraceptives (condoms)
  • Salt
  • Motor vehicles for transport of goods
  • Pharmaceutical products
  • Buses
  • Military equipment
  • Building materials for factories and warehouses
  • Goods for use in tourism industry
  • Miscellaneous chemical products
  • Cycle and Motorcycle ambulances
  • Syringes with or without needles
  • Mosquito and sand fly nets
  • Poultry or chicken feed
  • Energy: Liquified petroleum gas (LPG), Gas cylinders, Wood cook stoves
  • Solar products
  • Energy efficient bulbs

Exempt supplies of goods and services

Exempt: Transactions on which no VAT is due and no possibility to deduct VAT

  • Banking and life assurance services, Coins
  • Live animals & animal products
  • Postal services
  • Transport of exports
  • Educational services
  • Medical equipment and services, Medical surgical or laboratory sterilizers
  • Vegetable products in raw state
  • Printed matter
  • Petroleum products
  • Vehicles other than railway and train way rolling-stock, Rail locomotives and parts
  • Industrial machinery and construction machinery
  • Funeral service
  • Rentals and sale of properties used for residential purposes
  • Betting and gaming including lotteries

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on September 6, 2021.

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